CARLSBAD, CA (June 1, 2005) — On May 17, 2005, International Lottery & Totalizator Systems, Inc. (“ILTS”) (OTC Bulletin Board: ITSI), acting through its wholly owned subsidiary, Unisyn Solutions, Inc., entered into an agreement with Election Systems & Software, Inc. (“ES&S”) for ES&S to manufacture and distribute a Precinct Ballot Counter (“PBC”) developed by Unisyn. Additionally, the PBC will be integrated with ES&S’ vote tabulation and election management software. The agreement has an initial term of thirty-six (36) months and shall automatically renew for an unlimited number of one (1) year terms, unless either party provides written notice of its intent not to renew at least one hundred twenty (120) days prior to expiration of the then current term.

In consideration of a profit sharing formula, ILTS grants ES&S an exclusive worldwide license to manufacture, sell, and sublicense ILTS’ intellectual property relating to the PBC and PBC software to ES&S’ end customers. ES&S agrees to act as ILTS’ exclusive distributor, reseller, on-going service provider, and manufacturer of the PBC and PBC software.
The contract also includes a provision for ILTS and ES&S to enter into a software support agreement for ILTS to supply necessary software maintenance and services to ES&S on terms to be negotiated.

Unisyn was formed following the 2000 election to utilize ILTS’ secure transaction processing expertise to improve the process by which votes are collected and tabulated. Unisyn has developed several voting applications, including the InkaVote PlusTM precinct ballot counter which, when used in conjunction with the InkaVote system complies with the requirements established by Congress in the Help America Vote Act (“HAVA”).

Election Systems & Software, Inc. is one of the world’s largest and most experienced providers of total election management solutions.

“We are extremely pleased to have forged this strategic partnership with ES&S, the world’s premier voting system supplier,” said ILTS President, Mark Michalko. “The combination of ILTS’ secure transaction processing technology combined with the voting expertise and experience of ES&S will make InkaVote PlusTM attractive to voting jurisdictions seeking an economical HAVA compliant system.”

In commenting on the agreement, ES&S President and CEO Aldo Tesi said, “We are pleased to have our relationship with ILTS which supports our objective of providing reliable, secure and accurate voting systems to the election industry.”

This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This Act provides a “safe harbor” for forward-looking statements to encourage companies to provide prospective information about themselves so long as they identify these statements as forward-looking and provide meaningful cautionary statements identifying important factors that could cause actual results to differ from the projected results. All statements other than statements of historical fact, including statements regarding industry prospects and future results of operations or financial position, made in this Report are forward-looking. We use words such as “anticipates,” “believes,” “expects,” “future,” “intends,” and similar expressions to identify forward-looking statements. Forward-looking statements reflect management’s current expectations, plans or projections and are inherently uncertain. Our actual results may differ significantly from management’s expectations, plans or projections. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly release any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Readers are urged, however, to review the factors set forth in reports that we file from time to time with the Securities and Exchange Commission.